If you’re a first-time homebuyer, congratulations! Owning your home is a great decision, both personally and financially. One of the important steps you’ll have to take to protect your purchase is to buy homeowner’s insurance.
That may seem intimidating at first, but at Candy Swick & Company, we’ve helped many people settle into their perfect homes in Sarasota, Florida, and we’re here to help you too. Here are the basics about homeowners insurance so that you can take care of it with confidence.
What Is Homeowners Insurance?
A house is the largest purchase most of us will ever make. Naturally, it’s important to protect that investment–as well as all the belonging you keep inside it. Homeowners insurance is designed to do just that.
Homeowners insurance provides peace of mind to homeowners when purchasing a house or moving into a new residence. It offers coverage for the home itself, including interior and exterior damage. Additionally, the policy may cover your belongings found within the house as well as any landscaping projects or other structures such as fences. On top of that, it can even protect you from liabilities resulting from events that occur on your property – if someone else is injured or their items are damaged while in your home.
Do you have to buy homeowners insurance?
If you have a mortgage on your property, then you almost certainly carry homeowners insurance. Nearly all mortgage companies require homeowners to have enough insurance to cover the value of their property. After all, if your mortgage still exists, your property is the company’s guarantee that they won’t lose the money they loaned you.
What Does Homeowners Insurance Cover?
Although some of the details will vary by policy, most homeowners insurance covers the following:
- Dwelling – pays for damage to your house and any attached structures, such as the garage and deck.
- Other structures – for freestanding structures, such as a shed.
- Personal property – covers belongings that are stolen or damaged.
- Loss of use – pays living expenses temporarily if your home needs to be repaired and you can’t live in it.
- Personal liability – covers the payment if someone is injured or has their property damaged at your home unintentionally or because of neglect.
- Medical payments – pays for the medical treatment if someone is injured on your property, no matter who is at fault. This may also cover injury caused by you, a member of the household, or a pet when you are away from home.
What does homeowners insurance not cover?
Homeowners insurance is meant to protect you from financial loss due to catastrophes like fires or burglaries. However, there are some things that it will not cover that you should be aware of. For instance, most policies do not include coverage for flooding or earthquakes. These events can be especially devastating and require extra protection if you live in areas that are prone to them. However, insurance companies usually have additional coverage plans available specifically for these types of disasters. Moreover, a basic policy may also fail to cover your expensive items such as antiques, artwork, fine jewelry, or collectibles unless specifically directed to do so.
Homeowners Insurance Extras to Consider
Some homeowners would benefit from buying extra coverage. These include:
- Extra liability if your home or assets are worth more than the standard insurance limits. This coverage generally comes in $1 million extensions.
- Personal property coverage to replace higher-end property, such as appliances, jewelry, fine art, and electronics which may not be fully covered under a standard policy.
- Dwelling coverage, such as ordinance or law coverage pays to rebuild your home to current building codes, which is especially important for older homes.
- Extended and guaranteed replacement coverage ensures rebuilding costs will be met, even if they exceed the standard coverage.
Browse Our Listings and Find Your Dream Home Today
If you’re looking for a special property to call home in we invite you to find out how the dedicated agents at Candy Swick & Company can help. We’re committed to helping each client find their dream home, and we’d love to show you around these communities we love. For more information, contact us today!
Image credit: Vitalii Vodolazskyi / Shutterstock
